PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA             Item No.      5b 
Date of Meeting   February 28, 2012 

DATE:    February 17, 2012 
TO:     Tay Yoshitani, Chief Executive Officer 
FROM:    Mike McLaughlin, Director, Cruise & Maritime Operations 
Fred Chou, Project Manager, Seaport Project Management 
SUBJECT: Pier 66 Apron Pile-Wrap Project Design Funding Request 
CIP #C800516 
Amount of This Request: $135,000         Source of Funds: General Fund
Total Project Cost: $2,378,000 
ACTION REQUESTED: 
Request Port Commission authorization for the Chief Executive Officer to proceed with design
development, environmental review, permit applications, and preparation of construction 
documents for the Seaport Pier 66 Apron Pile-Wrap Project for an estimated cost of $135,000
bringing the total authorized cost of this project to $167,000. The total estimated project cost is
$2,378,000.
SYNOPSIS: 
The Pier 66/Bell Harbor complex is a 193,000 square-foot multi-use facility built in 1995 as part
of the Central Waterfront Project. Most of the facility is over water and is supported by a
combination of precast concrete and steel pipe piles. To protect the upper section of pipe pile, 
which is exposed to oxygen and subject to corrosion, the steel pilings were coated with an
epoxy-based material at the time of installation. Additionally, a cathodic protection system
installed during construction of the facility continues to protect the lower submerged portion of
the steel piling. Recent investigative effort has confirmed the cathodic system is functioning
well. 
The typical performance life of an epoxy protective coating applied to steel piles in a marine
environment has a span of 10-15 years. At this facility, the coating has reached the end of its
design life. Evidence of oxidation forming of varying degrees is clearly visible on the surface of
the steel piling. If left unattended, corrosion will continue and distress the steel pipe piles.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
February 17, 2012 
Page 2 of 6 
Maintaining focus on proactive asset stewardship is the key to achieving consistent performance
and maximum life of the pile support system. 
For these reasons Port Maintenance has been monitoring the condition of the piling for several
years, applying remedial measures as needed to distressed piles. Through scheduled expense
work projects over the last few years, select piles showing severe corrosion have been recoated
with an additional layer of epoxy material. In addition, as a corrective maintenance action, some 
piles have been armored with a high density polyethylene pile-wrap material to address the
corrosion. To extend maximum performance life of the structural piling system, the need for
further remedial measures has expanded and generally applies to all steel pilings at Pier 66.
Preliminary design work confirmed that pile wrapping is an effective way to address the
corrosion problem. However, additional diving inspection, testing, detailed design analyses,
material selection, and permitting must be completed before a construction package can be
finalized and future work begun. The pile -wrap installation project is projected to be performed
under a multi-year program, over a period of five years.
This project will address steel corrosion on piling/structures associated with Seaport operations.
A separate project will address corrosion associated piling/structures that are managed by Real
Estate. T he timing of the Real Estate pile-wrap project is to be coordinated with the upcoming
City of Seattle Seawall Replacement Project.
The Real Estate pile-wrap project, i.e., wave break structure protecting the Bell Harbor Marina,
has been included in the 2012 capital plan and will tentatively begin in 2013. The Port and the
City entered into a memorandum of understanding (MOU) in 1989 prior to the building of the
Central Waterfront project including the marina. The MOU states that under current conditions,
major capital improvements will be cost shared, 30% City and 70% Port. Although the City has
not confirmed its obligations under the MOU, staff are currently working with the City and
discussing this improvement as well as several elements of the MOU. Much of the work
invested in the Seaport pile-wrap project design and permitting efforts will also be applicable to
the future Real Estate pile-wrap project at Bell Harbor and other facilities, including Pier 69, on
similar steel pile support systems.
Following completion of design, staff will return to the Commission to seek final authorization
for construction.
PROJECT JUSTIFICATION: 
The proposed project would preserve an important asset. Authorization to proceed with this
project will allow a new pile-wrap system to be installed to replace a coating system that has
reached its expected service life. If left unattended, corrosion will continue and distress the steel
pipe piles. Maintaining focus on proactive asset stewardship is the key to achieving consistent
performance and maximum life of the pile support system.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
February 17, 2012 
Page 3 of 6 
Project Objectives: 
Preserve the structural integrity of the steel piling 
Complete project on time and within budget 
Protect the environment while performing the work 
Minimize disruptions to facility operations 
PROJECT SCOPE OF WORK AND SCHEDULE: 
Scope of Work: 
The scope of work of this project includes design development and permitting of a pile-wrap
system for Seaport steel piling at the Pier 66/Bell Harbor facility. Design will also include the
cleaning and replacement of an epoxy coating at the structural connection on top of some steel
piles.
Schedule: 
This will be a multi-year project and will be closely coordinated with the Pier 69 North Apron
Corrosion Control Project since it also includes a pile wrap component. The preliminary project
schedule is as follows: 
Commission Approval              February 2012 
Permit/Design Complete              August 2012 
Construction Funding Approval          September 2012 
Construction (5-Year Program)          October 2012  October 2017 
FINANCIAL IMPLICATIONS: 
Budget/Authorization Summary: 
Original Budget (2012 Plan of Finance)                           $2,378,000 
Previous Authorizations (Preliminary Planning)                        $32,000 
Current request for authorization                                  $135,000 
Total Authorizations, including this request                           $167,000 
Remaining budget to be authorized                            $2,211,000 
Total Estimated Project Cost                                 $2,378,000 
Project Cost Breakdown: 
Construction *                                           $1,869,000 
Construction Management *                                 $130,000 
Design                                                $112,000 
Project Management                                      $56,000

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
February 17, 2012 
Page 4 of 6 
Permitting                                                $33,000 
State & Local Taxes (estimated) *                                $178,000 
Total                                                   $2,378,000 
* Preliminary information only. Costs will be reviewed in detail during design development. 
Budget Status and Source of Funds: 
This project was included in the 2012 plan of finance under committed CIP #C800516, P66
Apron Pile Wrap, in the amount of $2,378,000.
This project will be funded from the General Fund. 
Financial Analysis and Summary: 
CIP Category        Renewal/Enhancement 
Project Type         Renewal/Replacement 
Risk adjusted discount  N/A 
rate 
Key risk factors         Material costs could fluctuate as a result of the extended project
timeline. 
Final bottom elevation of the pile wrap will determine whether divers
would be needed for the installation. Higher construction costs would
result if diver participation is required. 
Environmental permitting may cause project delays. 
Project cost for analysis  $2,378,000 
Business Unit (BU)     Seaport Cruise & Maritime Operations 
Effect on business      This project will not generate any incremental revenue. 
performance 
Depreciation expense based on actual project costs will be determined as
assets are put in use. It is estimated that 20% of the assets will be put in
use annually during the five-year project with an estimated useful life of 
20 years.
As a result, Net Operating Income after Depreciation for this facility is
projected to be as follows, stabilizing at $119,000 per year in 2017. 
NOI (in $000's)        2012     2013     2014     2015     2016
NOI            $0     $0     $0     $0     $0
Depreciation          $0      ($24)     ($48)     ($71)     ($95)
NOI After Depreciation    $0      ($24)     ($48)     ($71)     ($95)
IRR/NPV         N/A

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
February 17, 2012 
Page 5 of 6 
Lifecycle Cost and Savings: 
Annual Operating and Maintenance costs are not forecasted to change appreciably and will be
analyzed in detail during the design phase of the project when more specific information on
materials is available. 
STRATEGIC OBJECTIVES: 
This project supports the Port's strategy to "Ensure Airport and Seaport Vitality" by maintaining
and preserving vital Seaport assets. 
ENVIRONMENTAL SUSTAINABILITY: 
Design and project implementation will include practices to avoid and minimize potential
negative environmental effects. The project will identify construction and maintenance methods,
materials, and practices for effective under-pier work while avoiding release of deleterious
materials to the environment and reducing the potential for adverse effects on aquatic area
natural resource values. Timely asset preservation extends the service life of existing
infrastructure, as an alternative for avoiding more environmentally disruptive and
resource/materials consumptive large scale structure replacement actions.
BUSINESS PLAN OBJECTIVES: 
The Cruise and Maritime Operations Business Strategy is to market Seattle as a homeport and a
port of call to cruise lines serving Alaska and the Pacific Northwest. Proceeding with the project
will help preserve the integrity of the steel piles and allow continued operations at the facility.
TRIPLE BOTTOM LINE SUMMARY: 
Preserving existing assets defers high-impact and high-cost asset replacement, and therefore
reduces environmental impact and supports the economic vitality by reducing Port costs and
generating construction jobs. The proposed construction methods will have minimal noise and
traffic impact to the surrounding communities.
ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS: 
Alternative 1: Do nothing. This alternative would allow corrosion to continue and spread,
causing distress to the critical structural support system. This alternative is not recommended. 
Alternative 2: Replace the deteriorated epoxy-based coating system with another epoxy-based
coating system. Port's experience with recoating epoxy-coated piling in the tidal zone has been
unfavorable since the work is not done in a controlled environment, which often leads to
compromised coating durability. This alternative is not recommended.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
February 17, 2012 
Page 6 of 6 
Alternative 3: Replace the deteriorated epoxy-based coating system with a pile-wrap system.
This would provide a longer design life and more durable alternative to an epoxy-based coating
system. This alternative is recommended for implementation.
OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST: 
Photos of pilings at Pier 66 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: 
None